This is the rules reference. For how it works in the software, see Tax rates in the reference, or the how-to Set up taxes.
Sales Tax and Service Tax are separate taxes with separate rules. Knowing which one applies, and at what rate, is the heart of getting SST right.
Sales Tax
A single-stage tax on taxable goods manufactured in Malaysia or imported. It is charged once, by the registered manufacturer on sale or at the point of import, and not again as the goods move down the chain. Standard rates are 5% or 10% depending on the goods (with specific rates for a few items such as petroleum). Goods on the Exempted Order carry no Sales Tax.
Service Tax
Charged by a registered provider of prescribed taxable services when the service is provided. The standard rate is 8%, raised from 6% on 1 March 2024; a set of services (including food & beverage, telecommunications, parking and logistics) stays at 6%. The list of taxable services has been widened in 2024 and 2025, so scope is as important as rate: see Sources & what changed.
Tax type codes
Every taxable line carries a tax type code. These are the same codes MyInvois expects, so the value you set on a Cloudby tax item is what is reported on the e-Invoice:
| Code | Tax type |
|---|---|
| 01 | Sales Tax |
| 02 | Service Tax |
| 03 | Tourism Tax |
| 04 | High-Value Goods Tax |
| 05 | Sales Tax on Low-Value Goods |
| 06 | Not applicable / exempt |
Related
- Reference: Exemptions
- Reference: Tax rates and Tax on e-Invoice in Cloudby
- Handbook: e-Invoice scope & exemptions